I mean, we have seen this before. This is particularly classic in retail, with a lot of overleveraged expansion of new locations by both department and big box stores in the US.
Some dominoes took longer to fall than others (Circuit City was fast, Sears took half a century)
I'm seeing this right now in retail, actually. Particularly retail that got snapped up during the pandemic by private equity which already had high levels of debt. They are opening new stores left and right… and their expansion seems unabated by recent rate hikes. I have to imagine that can not last forever.
Some dominoes took longer to fall than others (Circuit City was fast, Sears took half a century)